Title: Louisiana: Lawyer accused of legal malpractice in fee reduction negotiations.

Preston v. Mariner Health Care Mgmt. Co., No. 10-30108, 2010 U.S. App. LEXIS 15721 (5^th Cir. La., July 28, 2010) is concerning the misunderstand between Preston and Mariner in the negotiations of the payment of fees owed by Mariner for legal services provided by Preston. Preston provided legal services for Mariner totaling $1,944,600.92. When Mariner did not pay the bill in a timely mater; Preston opened negotiations in deferring part of the bill to a later date. Mariner was under the impression that the bill had been reduced. This case is the result of the misunderstanding between the parties.

This case is the appeal of Mariner after the U.S. District Court for the Eastern District of Louisiana found in favor of Preston, and issued a summary judgment for the remaining $444,600.92 of the original bill.

Mariner is claiming that because Preston did not inform them that Louisiana law requires compromises of contracts to be reduced to writing; he had breached his fiduciary duty, committed legal malpractice, and was fraudulent in his actions. Thus, Mariner is appealing the summary judgment claiming these new charges make the charge a new and different case.

The doctrine of res judicata is to prevent a litigant from multiple lawsuits over the identical set of circumstances. The court found that this case met the four prong test for res judicata. Mariner’s appeal was based on the “same nucleus of operative facts.”  The charges of fraud, legal malpractice and breaching fiduciary duty were not allowed under the doctrine of res judicata.                              

The court found that the fee negotiations did not have a “meetings of the minds.” Mariner was responsible for the remained of the bill. The court affirmed.